Germany plans to offer more than 100 billion euros in aid to companies affected by the effects of the war in Ukraine, according to a document from the Ministry of Economy and Finance held by Reuters.
“At this juncture, the key issue for companies is to ensure short-term liquidity and therefore support businesses and industries with credit instruments,” the joint ministry document said.
Under the plan, which will be unveiled later today, the government will offer 7 billion euros in loans to companies affected by the war through the state-owned development bank KfW.
“Businesses of all sizes should have access to low-interest loans,” the document said.
In addition, the German government will provide guarantees for loans of up to 100 billion euros to ensure business liquidity during rising energy prices.
“In the event of a sudden, dramatic rise in prices, companies trading electricity and gas contracts on the stock exchanges may need to deposit very high additional collateral, the so-called margins, in the short term,” the document said.
Also, another option is the contribution of share or hybrid capital, for specific companies.
Source: Capital
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